 A Viatical Settlement Broker
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VIATICAL SETTLEMENTSCLICK BELOW TO NAVIGATE VIATICAL SETTLEMENT GUIDE
TAX INFORMATION
Effective January 1, 1997: The Health Insurance Portability and Accountability Act of 1996 makes the proceeds of Viatical Settlements TAX-FREE on the Federal level for individuals who are terminally or chronically ill.
Also, most states have declared that payments of viatical settlements are exempt from state taxes. However, some states do not give these payments tax-free status. Because of the complexity of the situation, it is advised that you seek professional tax advice.
The Health Insurance Portability and Accountability Act of 1996
Receipt of payment under a viatical settlement may affect your eligibility for public assistance programs, such as medical assistance (Medicaid), aid to families with dependent children, supplementary social security income, and AIDS drug assistance programs; and it also may be taxable and subject to claims of your creditors. Before applying for a viatical settlement, you should consult with the appropriate social services agency concerning how receipt could affect your eligibility and that of your spouse or dependents; and because of the potential tax consequences, please consult with a tax advisor. Entering into a life insurance settlement contract may cause other rights or benefits such as disability waiver of premium benefits that may exist to be forfeited by the owner; assistance should be sought from a financial advisor before pursuing and completing this transaction.
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